Spire Healthcare Agrees £1.03 Billion Takeover by Toscafund Consortium
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Spire Healthcare Accepts £1.03B Consortium Takeover Led by Toscafund
Details of the Spire Healthcare Takeover
Overview of the Acquisition
LONDON, Sept 5 (Reuters) – Spire Healthcare Group said on Saturday it had agreed to be taken over by consortium comprising funds managed by Toscafund, Three Hills and Ares, valuing its share capital at about £1,026 million ($1.39 billion).
The deal, which represents a premium of 66% to the company’s market capitalisation on May 13, the last day before it disclosed it had received an offer, was agreed shortly before a deadline expired.
Statements from Spire Healthcare
Comments from Chair-Designate Debbie White
Spire’s Chair-Designate, Debbie White, said Spire, which operates 38 hospitals and more than 55 clinics, had made significant progress in strengthening its care quality, diversifying revenue streams and driving efficiencies.
Sector Outlook and Cost Pressures
But she said the outlook for the sector was volatile, and ongoing cost pressures had been material, including from increases in national insurance contributions and the national minimum wage.
“Having conducted a comprehensive strategic review, the board is satisfied that the acquisition represents the best available outcome for Spire shareholders,” she said, adding that the 250-pence-a-share offer was the highest proposal the company had received during a strategic review.
Shareholder and Advisory Details
Shareholder Support
Shareholders representing 53.4% of the company’s stock had agreed to back the offer, the company said.
Advisors Involved
Spire was advised by Rothschild & Co, Perella Weinberg, J.P. Morgan Cazenove, Lazard and Berenberg, while the bidders were advised by Darblay Capital.
Additional Information
($1 = 0.7396 pounds)
(Reporting by Paul Sandle; Editing by Toby Chopra and Timothy Heirtage)
